Arizona Tax
For Arizona residents, you specify the employee's exemptions.
Deltek Modification Date - 1/14/11
The Arizona state tax is based on a percentage of the taxable wage. Employees subject to the Arizona state tax must indicate whether they want the state to withhold 0%, 1.3%, 1.8%, 2.7%, 3.6%, 4.2%, 5.1%, or 0.8% of the taxable wage.
Enter the following information on the Withholding grid on the Payroll tab of the Employee Info Center:
How Vision Calculates Tax
To calculate an employee's Arizona State tax, Vision does the following:
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Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
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Subtracts the employee's 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
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Applies the percentage indicated by the employee to the taxable wage, yielding the net income tax for Arizona.
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Divides the annual income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.